Individual Assignment Fall 2016 Module: Principles of Accounting (BUSS 1003) Level: 1 Max. Marks: 100(Weightage 30) Duration: 3 weeks Instructions to Student: • Students should read the assignment details carefully and have to answer all questions. Learning outcomes to be achieved by completion of the assessment: 1. Record income and receipts from credit customer, purchases, expenditures and payments to supplier. 2. Differentiate between accrual and cash basis accounting. CASE STUDY Brian Nnaji formed the Macdonald Sign Enterprise on October 1, 2016. During the month, the following financial transactions occurred: 2016 October 1 Brian Nnaji invested OR 60,000 in the new business. 2 Acquired supply of advertising materials in the amount of OR 20,000 on account. 3 Acquired supplies for cash, OR 54,000. (Note: Supplies are charged to expense right away.) 9 Received OR 70000 cash for services performed. 10 Paid insurance policy OR 4,000. 11 Painted signs for Compaj Company on account, OR 160,000 16 Withdrew OR 20,000 for personal use. 23 Collected OR40,000 from Bahwan Company. 27 Brian Nnaji owes OR 28000 for the month. 31 Paid Ooredoo OR10,000 for communication services for the month. Requirements: Now that you have reviewed the case study above, respond to the following requirements on your own. Q1. Record each of the above transactions in general journal. Explanations maybe omitted. Use the following account titles to journalize the transactions: (50 marks) a. Cash b. Accounts Receivable c. Supply of Advertising d. Accounts Payable e. Nnaji, Capital f. Nnaji, Withdrawal g. Service Fee Income h. Supplies Expense i. Insurance Expense j. Salary Expense k. Utility Expense Q2. Prepare the end-of-month report to account for the incomes and expenses of Macdonald Sign Enterprise under cash basis accounting. (20 marks) Q3. Prepare the end-of-month report to account for the incomes and expenses of Macdonald Sign Enterprise under accrual basis accounting. (20 marks) Q4. How does accrual accounting differ from cash basis accounting. The student may define/explain and give example for both cash basis and accrual basis computation of accounting net income. (6 marks) Instructions for completing the assignment: 1. The assignment must have a cover page indicating the module title, name of student, name of faculty and date of submission. 2. The assignment should have a table of contents, answers to the requirements and appropriate references, if necessary. Use Coventry Harvard style of referencing. 3. The assignment should be done in Word, font size 12, font style Times New Roman, text color black, colors can be used ONLY in appendices; main body of the report should be black and white. 4. Last date of submission: 8th week of the semester. The assignment should be submitted on time through Moodle. Late submission shall be penalized as per the norms of MEC mentioned in the Module Information Guide. 5. Plagiarism Policy. Plagiarized documents, in parts or whole, submitted by the students will be rejected. However, if the plagiarism is found to be accidental, the student may be advised to re-submit the work only once within one week from the date of rejection. A penalty of 25% of the total marks on the specific coursework assessment component will be imposed on the re-submitted work. If the re-submitted work is also found to be plagiarized, the student will be awarded a zero mark. If the work submitted is found to be intentionally plagiarized to gain an unfair advantage in any form, such work will be automatically rejected and a mark of zero will be awarded. If the student is found to have consistently submitted plagiarized works, the case will be dealt with seriously and may warrant student's suspension for a period or expulsion as may be recommended by a committee convened for the purpose. 6. Maximum marks to be awarded for this assignment is 30. The evaluation criteria follows: Criteria Marks 1. Journal entries 50 2. Calculation of net income under cash basis 20 3. Calculation of net income under accrual basis 20 4. Differentiation between cash and accrual basis accounting 6 Formatting, referencing, cover page and table of contents 4 Total marks 100 Clarification on Plagiarism Policy As per MEC policy, any form of violation of academic integrity will invite severe penalty. Plagiarised documents, in part or in whole, submitted by the students will be subject to this policy. A. First offence of plagiarism a. A student will be allowed to re-submit the assignment once, within a maximum period of one week. However, a penalty of deduction of 25% of the marks obtained for the resubmitted work will be imposed. b. Mark deduction: When the work is resubmitted, the marking will be undertaken according to the marking criteria. In compliance with this policy, the 25% deduction is then made on the marks obtained. For example, in an assessment that carries a maximum of 50 marks, suppose a student were to obtain 30 marks for the resubmitted work, the final marks for that assessment will be 22.5 (after deducting 25% of the marks actually obtained for the resubmitted work). c. Period of resubmission: The student will have to resubmit the work one week from the date he or she is advised to resubmit. For example, if the formal advice to resubmit was communicated to the student on a Sunday (latest by 5 pm), the student will have to resubmit the work latest by next Sunday 5 pm. d. If the re-submitted work is also detected to be plagiarized, then the work will be awarded a zero. e. Resubmission of the work beyond the maximum period of one week will not be accepted and the work will be awarded a zero. B. Any further offence of plagiarism a. If any student is again caught in an act of plagiarism during his/her course of study (either in the same module, same semester or in any other semester), the student will directly be awarded zero for the work in which plagiarism is detected. In such cases, the student will not be allowed to re-submit the work. C. Guidelines a. Type 1: In case plagiarism is detected in any component or part submission (submitted at different times) of one assessment (assignment), the deduction in marks will be applicable for the whole assessment (assignment), even if only the component or part submission alone needs to be resubmitted. b. Type 2: In case plagiarism is detected in a group assessment, all students of the group will be considered as having committed an act of plagiarism irrespective of whether plagiarism is on account of the act of all or a few or only one member. The policy will then be applied to all students. c. Type 3: Combination of Type 1 and Type 2: In case plagiarism is detected in any component or part submission (submitted at different times) of a group assessment (assignment), the deduction in marks will be applicable for the whole assessment (assignment), even if only the component or part submission alone needs to be resubmitted. All students of the group would be considered as having committed an act of plagiarism irrespective of whether plagiarism is on account of the act of all or a few or only one member. The policy will then be applied to all the students of the group. d. Type 4: Variation of Type 1 and Type 2: In cases where the assessment consists of components or part submissions that could be a group assessment component (e.g. group assignment) and an individual assessment component (e.g. individual reflection), the following will be applicable: 1. If plagiarism is detected in the group assessment component, all students of the group will be considered as having committed an act of plagiarism, irrespective of whether plagiarism is on account of the act of all or a few or only one member. The policy will then be applied to all students of the group. In such cases the group assessment component will be resubmitted as per the policy. 2. If plagiarism is detected in the individual assessment component, the individual assessment component will be resubmitted as per the policy. The policy will then be applied to that student alone. 3. In both cases (a) and/or (b), the deduction in marks will be applicable for the whole assessment (assignment). D. Amount of similar material a. The total amount of similar material in any form of student work from all sources put together should not exceed 30% (including direct quotations). b. The total amount of quoted material (direct quotations) in any form of student work from all sources put together should not exceed 10%. c. The total amount of similar material in any form of student work from a single source should not exceed 7 percent. However, cases having a similarity of less than 7 percent in such cases may still be investigated by the faculty depending on the seriousness of the case. d. If faculty member find enough merit in the case of a student work with a similarity (with a single source) of more than 7 percent as not a case of plagiarism, the faculty member should provide detailed comments/remarks to justify the case.